A good further transparency move

The Herald reports:

Members of the public are due to get greater insight into the thinking of those on the powerful Reserve Bank committee that sets interest rates.

The Monetary Policy Committee (MPC) and Finance Minister Nicola Willis have agreed to a new charter that will see members’ individual views on how to set monetary policy publicised.

So, members’ views on how the Official Cash Rate (OCR) should be set will be disclosed in meeting minutes, as will their rationales – even if they all share the same view.

Currently, the committee discloses if its members vote differently on how to set the OCR. But it doesn’t say who voted for what.

For monetary policy watchers, this will be a useful move. When there is a divergence of views, it will be very useful to see who voted what way, and why.

The NZIER Shadow Board always published the views of individual members, and their rationale. It will be good to have the real decision maker do the same.

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